State Hybrid HOV: As of 7/29/05 Arizona Revised Statutes from the 47th session Chapters 28-2416 and 28-737 allow hybrid vehicles that have been approved by the United States environmental protection agency as meeting, at a minimum, the United States environmental protection agency ultralow emission vehicle standard with a $8.00 special plates/hybrid sticker that is displayed on said vehicle to use the High Occupancy Vehicle (HOV) lanes regardless of the number of passengers. Arizona has not instituted this policy as it is awaiting clairification of the federal Hybrid HOV waiver from the Environmental Protection Agency. On 2/7/06 SB 1179 was passed by the Senate that would reaffirm the HOV benefit--pending federal clearance. On 09/08/06, Gov. Napolitano issued Executive Order 2006-13 which directs the establishment of a pilot program to allow qualified hybrid vehicles to drive in carpool lanes.

Vehicle License Tax Reduction: SB 1466 would reduce the annual vehicle license tax for vehicles that have the average MPG (arithmetic average of city and highway MPG), as established under federal guidelines, by the following amounts:25 percent for a vehicle with an average MPG rating of at least 31 but less than 36. 50 percent for a vehicle with an average MPG rating of at least 36 but less than 41. 75 percent for a vehicle with an average MPG rating of at least 41 but less than 46. It sets the tax at $10 for a vehicle with an average MPG rating of 46 miles per gallon or greater. Referred to the Finance, Rules, Appropriations, and Transportation committees 2/1/06. Passed Transportation committee 2/14/06.

The governor actually made an announcement recently that hybrids would be able to use the HOV lanes.

Sept 2006:

In an effort to encourage the use of hybrid cars, Arizona governor has issued an executive order allowing hybrid cars into the HOV lane during rush hour. Also, Napolitano ordered state agencies to only purchase hybrid and other fuel-efficient vehicles starting in 2007.

The governor's order instructs state agencies to establish a pilot program that would allow single-occupancy hybrid vehicles to utilize HOV (high-occupancy vehicle) carpool lanes during rush hour in the Phoenix area.

To encourage carpooling, those lanes have been reserved for vehicles carrying more than one passenger. Drivers of hybrid vehicles achieve the same environmental benefits because of their fuel efficiency, Napolitano said.

"We're using a variety of strategies to begin to clear the air in Arizona," she said in a statement. "Drivers who make the commitment to clear air and energy efficiency will get an easier commute. That seems like a good trade to me."

In announcing the change, Napolitano cited the new Energy Efficient Pilot Program. It opens the carpooling lanes to drivers of vehicles that achieve a 45 percent increase in combined city/highway fuel efficiency. Currently, that means three vehicles: Honda Insight, Honda Civic Hybrid and Toyota Prius.

To use the special lanes, drivers of those vehicles must apply through the Motor Vehicle Division of the Arizona Department of Transportation.

Once admitted to the program, those drivers will receive a special license plate and sticker indicating they may use the lanes. The program is limited to 10,000 vehicles on a first-come, first-served basis.

Currently, there are an estimated 9,000 of this variety of hybrids in use in Arizona.